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raw cotton under RCM

27 June 2018

if any Registered person purchase raw cotton from agriculturist then such registered person liable to pay GST under RCM.

here whether such registered person should be in business of raw cotton??

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13 Replies

Vinod Babu (24191 Points)
Replied 27 June 2018

RCM is suspended currently. So no gst on RCM

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Jatin (Accountant) (3479 Points)
Replied 27 June 2018

Yes, RCM payable under GST if raw cotton purchased

@ Mr. Vinod Ji, RCM again suspended till 30.09.2018 for section 9(4)

Raw cotton fall under section 9(3)

Deepak Arora (176 Points)
Replied 27 June 2018

yes RCM is suspended still my question is whether registered person liable to pay GST under RCM only if he is in the business of Raw Cotton.

2) if he purchase the same for his personal purpose, in such case he is liable to pay GST under RCM ?

Jatin (Accountant) (3479 Points)
Replied 27 June 2018

For personal purpose, no GST under RCM

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 28 June 2018

As per Notification 43/2017 CT (R) , Raw Cotton Falls under section 9(3) which was never suspended , So RCM is compulsory on purchase of Raw cotton from Aggriculuralist

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Deepak Arora (176 Points)
Replied 28 June 2018

is exemption of 20/10 lakh is available ???

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 28 June 2018

No exemption of threshold limit of 10/20 lac , if availing service or Goods from supplier whose services are under RCM , as per secrion 24 CGST Act the recepient has take compulsory registration

Deepak Arora (176 Points)
Replied 28 June 2018

it means if I start the business of cotton and I purchase the same from agriculturist then in such case I have to get registered under GST and liable to pay GST under RCM

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 June 2018

yes correct Mr. Deepak Arora, this how the law reads out...

Deepak Arora (176 Points)
Replied 29 June 2018

thank you so much sir......... 😃

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 June 2018

you are welcome Mr. Deepak Arora ........

Nirav Bhalodia Patel (2 Points)
Replied 29 August 2018

i m not paying rcm on raw cotton from nov-17 to june-18....
but i m paying gst from sales data.
so in this case pls suggest me....

Balakrishnan (Proprietor) (342 Points)
Replied 31 December 2018

Raw Cotton is 'agriculural produce' within the definition of Noti. 12/2017 and that too if purchased from Agriculturist is sure exempted service. Hence RCM is not applicable.